Share prices post gains on first trading day
Most local stocks reported gains on the first trading day of 2012, which also marked the start of extended hours at the Philippine Stock Exchange.
The main-share Philippine Stock Exchange index on Monday gained 25.12 points, or 0.57 percent, to finish at 4,397.08 as some investors started positioning for the New Year.
But value turnover was sluggish at P1.77 billion, reflecting scant participation for the day.
“Contrary to calls for a Santa Claus rally happening up to the first trading day of the year, this polar bear market is as cold as Santa’s home—the North Pole,” said Jose Mari Lacson of Campos, Lanuza & Co., pointing out that the market, with extended trading hours, performed as expected.
On Monday, trading at the local stock market was extended until 3:30 p.m. There is a recess from noon to 1:30 p.m.
“Investors were not attracted by the chance of synchronizing with European markets and merely spread out their trading business across a longer period. Market turnover remained roughly the same as last week,” Lacson added. “While it is easy to lengthen the trading hours, it does not drive market liquidity. Focusing on widening the market’s breadth, as measured by the number of listed and liquid companies, is a far better driver to target for the exchange.”
According to Joseph Roxas of Eagle Equities Inc., many investors are still on vacation.
“You won’t probably see the return of regular volume until next week. Hong Kong and most of Asia are still in holiday today,” Roxas said.
Amid light trading, there had been 95 advancers against 47 decliners, while 43 stocks were unchanged.
The index was led higher by the property counter, which rose by 1.54 percent. Only the holding firm counter ended in the red.
The companies that aided the PSEi’s rise were PLDT, DMCI, Meralco, Semirara, ALI and Ayala Corp.
Infrastructure-related stocks, like EEI and cement-makers Seacem and Holcim, also traded briskly with construction seen to benefit from the government’s pump-priming activities this year.
The Gatchalians’ Wellex also traded higher on reports that its affiliate would soon seal a lucrative deal with Ayala Land Inc. for the development of a 60-hectare estate in Valenzuela City.
The PSEi’s gains for the day were trimmed by the decline of AP, AGI and Philex. GMA-Phil deposit receipts and Security Bank also closed lower.
To mark the first trading day of 2012, the PSE conducted a ceremonial toast on both Tektite and Ayala trading floors on Monday.—Doris C. Dumlao
